EU gas prices hit four-year high amid Iran war

The surge comes as the bloc's gas storage facilities were just 74.62% full as of October 25, well below seasonal averages. Liquefied natural gas (LNG) shipments through the Strait of Hormuz, which accounted for around a fifth of global LNG trade before the US and Israeli military campaign against Iran earlier this year, remained approximately 80% below pre-conflict levels.

UK faces energy bill hikes

In the UK, the month-ahead gas contract rose by 4% to its highest level since December 2022. British households could face a 27% increase in energy bills in January, pushing the average annual dual-fuel bill to nearly £2,200 ($2,940), according to a forecast by energy supplier EDF.

EU energy crisis fears

In September, EU Energy Commissioner Dan Jørgensen warned that the bloc was facing its worst energy crisis since 2022. German media reported that Berlin was planning to make households and businesses pay for a national emergency gas reserve costing more than €3 billion over ten years.

The opposition Alternative for Germany (AfD) party called for restoring energy ties with Russia. On October 13, AfD co-leader Alice Weidel said Germany should seek its own diesel deal with Moscow, praising Trump's agreement with Russia as a pragmatic approach.

Russian energy ties

Following the EU's sweeping sanctions on Russia in 2022, the bloc experienced one of its worst energy crises in decades. While Russia accounted for around 45% of the bloc's gas imports in 2021, its share had fallen to approximately 12% by 2025.

Trading Economics forecasts that European gas prices will reach €98.20 per megawatt-hour by the end of the fourth quarter of 2026, as the EU continues its efforts to phase out Russian energy supplies despite Moscow describing these efforts as a 'suicidal' policy.